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Serving with a Smile on Airbnb: Analyzing the Economic Returns and Behavioral Underpinnings of the Host’s Smile

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Abstract

Non-informational cues, such as facial expressions, can significantly influence judgments and interpersonal impressions. While past research has explored how smiling affects business outcomes in offline or in-store contexts, relatively less is known about how smiling influences consumer choice in e-commerce settings when there is no face-to-face interaction. In this article, we use a longitudinal Airbnb dataset and a facial attribute classifier to quantify the effect of a smile in the host’s profile photo on property demand and identify factors that influence when a host’s smile is likely to have the biggest effect. A smile in the host’s profile photo increases property demand by 3.5% on average. This effect is moderated by a variety of host and property characteristics that provide evidence for the role of uncertainty underlying why smiling increases demand. Specifically, when there is greater uncertainty regarding either the quality of the accommodations or the interaction with the host, a host’s smile will have a greater effect on demand. Online experiments confirm this pattern, offering further support for uncertainty perceptions driving the effect of smiling on increased Airbnb demand, and show that the effect of smiling on demand generalizes beyond Airbnb.

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‘Sharing economy’ platforms such as Airbnb have recently flourished in the tourism industry. The prominent appearance of sellers' photos on these platforms motivated our study. We suggest that the presence of these photos can have a significant impact on guests' decision making. Specifically, we contend that guests infer the host's trustworthiness from these photos, and that their choice is affected by this inference. In an empirical analysis of Airbnb's data and a controlled experiment, we found that the more trustworthy the host is perceived to be from her photo, the higher the price of the listing and the probability of its being chosen. We also find that a host's reputation, communicated by her online review scores, has no effect on listing price or likelihood of consumer booking. We further demonstrate that if review scores are varied experimentally, they affect guests' decisions, but the role of the host's photo remains significant.
Article
Agency and communion are the core dimensions of social judgment as they indicate whether someone's intentions toward us are beneficial or harmful (i.e., communion), and whether they have the ability to fulfil their intentions (i.e., agency). Recent advances have demonstrated that communion encompasses both sociability (e.g., friendliness, likeability) and morality (e.g., honesty, trustworthiness) characteristics. In this article, we review the emerging literature highlighting that morality and sociability make unique contribution to social judgment and that morality has a primary role in the evaluations we make of individuals and groups. We also consider the evidence showing that morality and sociability play distinct roles in the positive evaluation of the individual and group self-concept. We conclude that future research on social judgment should expand the two-dimensional model to the more specific aspects of communion captured in information about morality and sociability.
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Understanding how people form impressions of others is a key goal of social cognition research. Past theories have posited that two fundamental dimensions—warmth and competence—underlie impression formation. However, these models conflate morality with warmth and fail to capture the full role that moral character plays in impression formation. An emerging perspective separates moral character (or morality) from warmth on both theoretical and empirical grounds. When morality is pitted against warmth, morality is clearly a more important driver of impression formation, as revealed by correlational, experimental, and archival studies. Yet social warmth remains important and conveys distinct information that morality does not. Alongside competence, both factors matter not only for person perception but also for other aspects of social cognition, including group perception. Important unanswered questions remain regarding the perceived structure of moral character and the way it is appraised in everyday life.
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The present study of 138 participants explored how facial expressions and gender stereotypes influence impressions. It was predicted that images of smiling women would be evaluated more favorably on traits reflecting warmth, and that images of non-smiling men would be evaluated more favorably on traits reflecting competence. As predicted, smiling female faces were rated as more warm; however, contrary to prediction, perceived competence of male faces was not affected by facial expression. Participants' female stereotype endorsement was a significant predictor for evaluations of female faces; those who ascribed more strongly to traditional female stereotypes reported the most positive impressions of female faces displaying a smiling expression. However, a similar effect was not found for images of men; endorsement of traditional male stereotypes did not predict participants' impressions of male faces.
Article
Attitude theory is used to provide a conceptual analysis of how attitudes toward men and women relate to gender stereotypes. Consistent with this analysis, attitudes toward the sexes related positively to the evaluative meaning of the corresponding gender stereo-types. In addition, attitudes and stereotypes about women were extremely favorable - in fact, more favorable than those about men. The findings also demonstrated that the Attitudes Toward Women Scale assesses attitudes toward equal rights for women not attitudes toward women, and therefore did not relate to the evaluative meaning of subjects' stereotypes about women.
Article
It was predicted that rapid onset and offset times of smiles are indicators of strategic or managed positive affect. Women (N = 96) were videotaped interacting with elementary-aged boys whose behavior (responsive, cooperative versus unresponsive, resistant) was likely to elicit positive versus negative affect. Adult smiles were found to fade faster when directed to unresponsive than to responsive children. Onset time of adult smiles, on the other hand, were found to vary as a function of caregiver attributions, that is, faster onset times were shown by "luck" than "ability" attributors. Fast offset time was interpreted as an indicator of unreciprocated positive affect (situational influence on smiling). Fast onset time of smiles was interpreted as reflecting an ingratiating self-presentation strategy (personal influence on smiling). Trends were observed indicating that slow onset and offset times of smiles acted to increase child responsiveness.
Article
Purpose – The purpose of this paper is to examine if the service worker's display of smiles in the service encounter has an effect on customer satisfaction. Design/methodology/approach – An experimental design was used in which participants (N=220) were randomly allocated to one of four service encounters. Two variables were manipulated; the service worker with whom the participant interacted had either a neutral facial expression or a smiling facial expression, and the service worker was either male or female. Findings – The smiling service worker produced a higher level of customer satisfaction than the neutral service worker, regardless of the sex of the service worker (and the sex of the participant). In addition, the results indicate that this outcome involved both emotional contagion and affect infusion. Originality/value – This paper extends the service literature's discourse on the impact of the service worker's smile behavior on customer satisfaction by including intermediate variables such as appraisals, emotions, and the attitude toward the service worker.
Article
This article reports the results of an experimental investigation of the influence of a communicator’s characteristics on respondent’s evaluation of an advertisement when the communicator is in the role of a spokesperson. Specifically, the author assesses the impact of the physical attractiveness, sex and race of a spokesperson, the sex of the respondent and product advertised on respondent’s attitude toward the advertisement, and respondent’s perceptions of the advertised product. The results presented indicate that the effectiveness of the factors mentioned are dependent on the specific objective of the communication. A main effect of physical attractiveness was noted on a subject’s attitude toward the advertisement, on perceptions of product quality and intent to purchase. The sex of the communicator impacted on a subject's perception of product quality and interacted with the race of the communicator to effect the intent to purchase variable. Race was shown to effect the subject’s perception of product quality. A main effect of the sex of the subject was noted for the cognition variable.
Chapter
Along with race and gender, people commonly use age to categorize—and form stereotypes about—others. Of the three categories, age is the only one in which the members of the in-group (the young) will eventually join the out-group (the old). Although ageism is found cross-culturally, it is especially prevalent in the United States, where most people regard growing older with depression, fear, and anxiety. Older people in the United States are stigmatized and marginalized, with often devastating consequences. Although researchers have paid a great deal of attention to racism and sexism, there has been a dearth of research on ageism. A major reason for this neglect is that age prejudice is still considered socially acceptable. As baby boomers approach retirement age, however, there has been increased academic and popular interest in aging. This volume presents the current thinking on age stereotyping, prejudice, and discrimination by researchers in gerontology, psychology, sociology, and communication. The book presents theoretical and empirical findings on the origins and effects of ageism, as well as suggestions on how to reduce ageism for the approaching "graying of America." Bradford Books imprint
Article
Primitive emotional contagion has been proposed to explain why "service with a smile" predicts encounter satisfaction. We provide a comprehensive test of this mechanism by examining mimicry and mood as mediators in service encounters, contrasting such mediation with a direct path through perceived service quality. Independent coders recorded the strength of employees' and customers' smiles at three points in time during real service encounters, and 173 customers completed postencounter surveys. Mimicry effects were supported; however, only service quality appraisals, and not customers' affect, fully mediated the relationship of employee smiling and encounter satisfaction.
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Americans stereotype elderly people as warm and incompetent, following from perceptions of them as noncompetitive and low status, respectively. This article extends existing research regarding stereotyping of older people in two ways. First, we discuss whether the mixed elderly stereotype is unique to American culture. Data from six non-U.S. countries, including three collectivist cultures, demonstrate elderly stereotypes are consistent across varied cultures. Second, we investigate the persistence of the evaluatively-mixed nature of the elderly stereotype. In an experiment, 55 college students rated less competent elderly targets (stereotype-consistent) as warmer than more competent (stereotype-inconsistent) and control elderly targets. We also discuss the type of discrimination—social exclusion—that elderly people often endure.
Article
We construct two models of the behavior of consumers in an environment where there is uncertainty about brand attributes. In our models, both usage experience and advertising exposure give consumers noisy signals about brand attributes. Consumers use these signals to update their expectations of brand attributes in a Bayesian manner. The two models are (1) a dynamic model with immediate utility maximization, and (2) a dynamic “forward-looking” model in which consumers maximize the expected present value of utility over a planning horizon. Given this theoretical framework, we derive from the Bayesian learning framework how brand choice probabilities depend on past usage experience and advertising exposures. We then form likelihood functions for the models and estimate them on Nielsen scanner data for detergent. We find that the functional forms for experience and advertising effects that we derive from the Bayesian learning framework fit the data very well relative to flexible ad hoc functional forms such as exponential smoothing, and also perform better at out-of-sample prediction. Another finding is that in the context of consumer learning of product attributes, although the forward-looking model fits the data statistically better at conventional significance levels, both models produce similar parameter estimates and policy implications. Our estimates indicate that consumers are risk-averse with respect to variation in brand attributes, which discourages them from buying unfamiliar brands. Using the estimated behavioral models, we perform various scenario evaluations to find how changes in marketing strategy affect brand choice both in the short and long run. A key finding obtained from the policy experiments is that advertising intensity has only weak short run effects, but a strong cumulative effect in the long run. The substantive content of the paper is potentially of interest to academics in marketing, economics and decision sciences, as well as product managers, marketing research managers and analysts interested in studying the effectiveness of marketing mix strategies. Our paper will be of particular interest to those interested in the long run effects of advertising. Note that our estimation strategy requires us to specify explicit behavioral models of consumer choice behavior, derive the implied relationships among choice probabilities, past purchases and marketing mix variables, and then estimate the behavioral parameters of each model. Such an estimation strategy is referred to as “structural” estimation, and econometric models that are based explicitly on the consumer's maximization problem and whose parameters are parameters of the consumers' utility functions or of their constraints are referred to as “structural” models. A key benefit of the structural approach is its potential usefulness for policy evaluation. The parameters of structural models are invariant to policy, that is, they do not change due to a change in the policy. In contrast, the parameters of reduced form brand choice models are, in general, functions of marketing strategy variables (e.g., consumer response to price may depend on pricing policy). As a result, the predictions of reduced form models for the outcomes of policy experiments may be unreliable, because in making the prediction one must assume that the model parameters are unaffected by the policy change. Since the agents in our models choose among many alternative brands, their choice probabilities take the form of higher-order integrals. We employ Monte-Carlo methods to approximate these integrals and estimate our models using simulated maximum likelihood. Estimation of the dynamic forward-looking model also requires that a dynamic programming problem be solved in order to form the likelihood function. For this we use a new approximation method based on simulation and interpolation techniques. These estimation techniques may be of interest to researchers and policy makers in many fields where dynamic choice among discrete alternatives is important, such as marketing, decision sciences, labor and health economics, and industrial organization.
Article
Research indicates that rejected individuals are better than others at discriminating between genuine (Duchenne) and deceptive (non-Duchenne) smiles (i.e., true versus false signals of affiliative opportunity). We hypothesized that rejected individuals would show a greater preference to work with individuals displaying Duchenne versus non-Duchenne smiles. To test this, participants wrote essays about experiences of inclusion, exclusion, or mundane events. They then saw a series of 20 videos of smiling individuals (10 with Duchenne and 10 with non-Duchenne smiles). Participants then indicated how much they would like to work with each target. Analyses revealed that compared to included and control participants, excluded individuals showed a greater preference to work with individuals displaying “real” as opposed to “fake” smiles. This effect was partially mediated by threats to “relational needs” (Williams, 2007) and fully mediated by threats to self-esteem. These results suggest that exclusion yields adaptive responses that could facilitate reconnection with others.